(1) Each international bank agency shall keep a set of accounts and records in English, reflecting all transactions on a daily basis. The international banking corporation of each bank agency shall perform, or shall cause to be performed, an audit of the agency within each calendar year and within 15 months of the previous audit, in compliance with the following minimum audit requirements. If the audit is performed on a departmental or continuous basis, it should be initiated during the calendar year and within 15 months of the previous audit.

Terms Used In Florida Regulations 69U-140.018

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
    (2) Persons who perform audits for the international bank agencies must be independent of any manager or employee in charge of operating the international agency and must qualify pursuant to one of the following classes:
    (a) The audit department of the international bank agency or the audit department of an affiliated group or related bank holding company, or the audit department of a correspondent bank, provided that the audit department and the audit department supervisor are under management of the international banking corporation.
    (b) Certified Public Accountants licensed to practice in the State of Florida and independent of the international bank agency and of its affiliates.
    (3) A party is considered independent if:
    (a) The party reports directly to the international bank agency’s board of directors or other entity charged with supervision of the international bank agency;
    (b) The party’s duties at the international bank agency are confined entirely to auditing the international bank agency;
    (c) The party has no proprietary interest, directly or indirectly, in any partnership, firm, or other person that controls or directs the international bank agency;
    (d) The party has no outstanding loans or other obligations that have been criticized by any other auditor or any regulatory agency;
    (e) All relationships the party has with any member of the board of directors or other entity charged with supervision of the agency have been disclosed to the board of directors or other entity charged with supervision of the agency and all questions concerning the partys’ independence have been resolved before the internal audit begins; and,
    (f) For certified public accountants, independence shall be governed by the rules of the State Board of Accountancy.
    (4) To satisfy the requirements of this section, each internal audit shall:
    (a) Assess the effectiveness of the international bank agency’s internal control policies and procedures, including the electronic data processing function; and,
    (b) Be conducted in accordance with generally accepted auditing standards and shall include an assessment of each of the following areas:
    1. Asset accounts;
    2. Liability accounts;
    3. Regulatory capital;
    4. Income and expense accounts; and,
    5. Contingent liabilities and off-balance sheet activities.
    (5) In lieu of a comprehensive internal audit, an international bank agency may satisfy this audit requirement by having a continuous audit performed by a party qualified pursuant to subsection (2), above.
    (6) Within 90 days after the completion of the internal audit, and within 45 days of acceptance by the board of directors or other entity charged with supervision of the international bank agency, the board of directors other entity charged with supervision of the international bank agency shall submit the following to OFR:
    (a) A copy of the completed internal audit report, including the date or dates on which the audit was conducted;
    (b) A statement indicating that all of the areas outlined in this rule were reviewed, or specific reasons why certain areas were not reviewed;
    (c) A statement of condition and a statement of income and expense for the financial institution (and the holding company if appropriate) as of the audit date;
    (d) A statement describing the findings and recommendations of the audit;
    (e) A copy of the international bank agency’s response to the auditors’ findings and recommendations; and,
    (f) A letter from the international banking corporation’s board of directors or other entity charged with supervision of the international bank agency stating that the audit report, the auditors’ recommendations and the international bank agency’s response to the auditors’ recommendations have been reviewed and accepted, or in the alternative why they have been rejected. All audit documentation specified herein shall be forwarded to OFR.
    (7) OFR shall review each audit and, if it finds that the internal audit does not comprehensively address all relevant areas of concern or accurately reflect the condition of the financial institution, OFR shall require an audit pursuant to section 655.045(3)(a), F.S.
Rulemaking Authority 655.012(2), 655.045(3), 663.09, 663.13 FS. Law Implemented 655.045(3), 663.09 FS. History-New 3-29-83, Formerly 3C-15.12, Amended 8-19-86, 5-22-90, 10-29-91, 2-17-92, Formerly 3C-15.012, Amended 3-11-01, Formerly 3C-140.018, Amended 1-1-18.